The Nordic countries are widely recognised for their accessible and inclusive higher education systems, which are considered important drivers of innovation, equity and competitiveness in the knowledge economy.
While metropolitan and well-established traditional universities often benefit from strong institutional capacity, stable student numbers and robust research infrastructure, higher education institutions in regional centres and smaller towns operate under different conditions. These institutions are increasingly initiated, shaped by – and must respond to – complex structural pressures, such as rural population decline, regional disparities and growing demand for skilled labour. They are also affected more broadly by neoliberal policy reforms, which emphasise institutional consolidation, scale, efficiency and centralisation (Thiem, 2009).
The emergence and development of higher education institutions outside major urban areas represent a strategic, local response to the structural challenges and policy reforms. These institutions seek to strengthen territorial and social cohesion by improving access to education and supporting regional labour market needs. Moreover, they are increasingly positioned not only as education providers, but are also intended to be engines of regional development, supporting upskilling, public-private collaboration and the retention of young people in rural areas. While research indicates the potential of these institutions to meet such objectives, their actual impact remains to be fully assessed and confirmed (Mærsk et al., 2023; Rodríguez-Pose & Wang, 2025; Rossi & Goglio, 2020).
This report is an output of the EDYNORA project, funded by the Nordic Council of Ministers. It explores the role of higher education institutions located outside major cities in supporting local and regional development, with a particular focus on their impact on labour markets, youth attraction and retention and the overall attractiveness of the given area. Drawing on empirical material from six case studies across the Nordic countries (Map 1), the study aims to identify key lessons to guide policymakers and practitioners in establishing and developing appealing learning environments in small towns and rural areas across the Nordic Region.